There was a long time ago I could pretty much build my bike from scratch. Yeah, I could assemble everything, that’s easy. Putting on gears, lacing up spokes onto wheels, getting the brakes on. I even used to pick out the individual ball bearings that went into my bikes. Then came a day when the ball bearings got sealed into cartridges making them last longer, roll smoother and easier to maintain. In a couple years, hydraulic brakes for road bicycles will be here. The industry has gone past my ability to build my bikes from scratch. I can still do most of it, but for the highly technical pieces, I rely on an expert mechanic.
A few months ago, I had a conversation with one of my clients about whether they should “buy it or build it.” Really? I honestly didn’t know those conversations even happened anymore. I really thought all the conversations these days were about should we use SaaS or stay on premise. I was reminded about this as I read the 2012 HR Technology Survey from Cedar Crestone. One of the charts noted the differences between HR, IT and executive perceptions and challenges to move to SaaS. Number 3 for HR and Executives? Security and Data Privacy concerns. Of course that was number 1 for IT.
I remember when I used to work for ADP a number of years back. This is old school, but their tax service center was in San Dimas, California… quite at risk of a major earthquake. It was in California for a number of reasons – primarily I assume because it gave them an extra 3 hours to file taxes in the U.S. But while ADP’s state of the art tax facility was at major risk of earthquake damage, their backup facility was somewhere on the other side of the San Andreas fault in Arizona. I remember talk about power lines coming in from all 4 external walls, just in case some guy with a backhoe ploughed through power lines on 3 sides by accident.
I also love conversations about data security. Let me be blunt: unless you are Citi, Amazon.com, or Walmart, you probably don’t have an entire organization dedicated to data security and the upkeep of your SAS-## (whatever it is these days). I’m sure you can do security well, but the chances you can do it better than the organization that does it as their core business, stop worrying about it. Back to ADP for a moment – I remember always having a personal chuckle moment when a client or prospect said to us that they had their own tax accountants, and felt better about that than using ADP. Guys, let’s be blunt again. ADP has probably hundreds of tax accountants, and they are probably better than yours.
Just like taxes are not your core business, you probably don’t host servers as your core business either. SaaS is here. Get over it IT.
So I had to upgrade my cell phone contract. I used to be on this thing where I had a bucket of minutes and text messages to use, and now I’m on exactly the opposite. I have unlimited phone and text and about 10 GB of data I can use every month. It really points to a shift in how we as users of wireless devices are working. Less and less of our days are spent actually talking to each other, and more of our days are spent collaborating through various mechanisms that involve data. I will admit to spending an exceptional amount of time browsing news on my phone, looking through facebook updates to keep tabs on people, and using my phone for work emails. Nobody calls me anymore, and if they do, I get my voicemails through data (I read my VM, have not listened to one in years).
One of the big questions these days is about SaaS and Cloud. Should we do it? Should we stay on PeopleSoft or SAP HCM?
The answer for SaaS is a definitive Yes.
At some point, be it this year, next or in 5 years, you are going to move to the cloud. I’m not an opinion about your current on-premise strategy, and I’m not making a judgment of you if you disagree. I’m simply stating a fact. Let’s tale a look at the facts:
- ADP: The actual development of the Enterprise HRMS client server product is probably severely limited. I don’t even know if they sell it anymore. We do know that ADP Vantage is what they are selling and developing.
- Oracle / PeopleSoft: We’ve all heard about applications unlimited, but for those who thing that in 2020 we’ll still be going to a PeopleSoft Track at OpenWorld, I think you really have to evaluate your reality. The developers are all on Fusion. Let’s say you are right and there is still a PeopleSoft product in 2020. How long do you think it will have been since your last major product enhancement?
- SAP: Well, there’s HAHA, and there’s SuccessFactors. Either way, SAP kind of knows that they are pouring development resources into the cloud. Same conclusion as with PeopleSoft – it will be around for a while, but that’s not the whole reality.
- Workday: It’s already in the cloud from the start – no discussion here.
- Talent Management: It does not really matter if you bought Taleo, SuccessFactors, Cornerstone, PeopleFluent, (I’m going to get in trouble for leaving out 50 companies), you bought into the cloud long ago for TM.
I’m not really trying to change your mind on the cloud here. It really does not matter. If you are an HR technology buyer, you simply don’t have a choice. The vendors and the industry are in the midst of choosing for you. In just a few short years, all of your premise based HR technologies are going to cease or significantly slow their development efforts and fully shift to the cloud. If you want to be on a product that will be continuously developed, that is where it will be.
Just in the same way I really don’t have a choice to stay on my old cell phone plan, the world is moving on when it comes to HR applications. It’s time to move with it.